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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 1, 2012 <br />Action Agenda <br />Item No. ~~ <br />SUBJECT: Health Insurance Benefits for Employees of the Orange County Alcoholic <br />Beverage Control Board <br />DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />1. Request from Alcoholic Beverage <br />Control Board to Join Orange County <br />Health Insurance <br />INFORMATION CONTACT: <br />Sharon Goode Laisure, Interim Human <br />Resources Director, 919-245-2552 <br />Diane Shepherd, Benefits Manager, <br />919-245-2558 <br />PURPOSE: To seek BOCC approval regarding the addition of a subgroup, Orange County <br />Alcoholic Beverage Control (ABC) Board employees and retirees, to the Orange County health <br />insurance plan with UnitedHealthcare. <br />BACKGROUND: In September 2002, the ABC Board and Orange County discussed the <br />possibility and costs associated with adding ABC employees to the County's health insurance. <br />At that time, the addition of ABC employees would have resulted in an increase of between <br />3.5% and 6.9% in Orange County's health care premiums. No action was taken at that time to <br />include ABC employees in the County's health plan. <br />In June 2005, the ABC Board had a 19% increase in group health insurance and again <br />requested that Orange County explore the option of ABC employees "piggybacking" on the <br />County's health insurance for the following year's coverage. The ABC Board opted to renew its <br />own group health insurance after extensive research into the feasibility of joining the County's <br />health plan. <br />In February 2012, the Human Resources Department received a verbal request to research the <br />possibility of adding thirty ABC employees and six retirees (all under age 65) to .the County's <br />health plan effective July 1, 2012. A written request (Attachment 1) followed. <br />UnitedHealthcare, Orange County's current health insurance provider, has confirmed that <br />adding these thirty-six individuals and dependents would have no impact on the County's <br />current premiums. While current premiums will not be affected, the addition of the ABC Board <br />employees may increase the County's exposure to increased utilization and increase in claim <br />costs. The average age of ABC Board employees (47.2 years) is greater than the average of <br />